This premier training course has been successfully held since 1994. Presented by a leading firm in Gas and LNG transactions, the course is immensely popular and well attended. It has grown to be held in Singapore, Bali, Kuala Lumpur, Singapore and Perth, and altogether has trained in excess of 180 executives in the industry every year. Companies that have participated in the previous rounds of this course include virtually all of the major oil and gas companies. The course will enable participants to gain an insight into the way in which Buyers and Sellers view and negotiate Gas and LNG Sales Agreements, and will give participants a detailed understanding of the terms that are important in these transactions.
This course will cover:
• Effective guidance for concluding gas and LNG sales agreements
• An insight into the way in which buyers and sellers view and negotiate gas and LNG sales agreements
• A detailed understanding of the terms that are important in these transactions
• An appreciation of how pricing in contracts is approached in different markets
• A thorough grasp of the inherent risks in a gas or LNG project, and how these risks are addressed within the gas and LNG sales agreement
• A highly practical approach to possible issues and solutions that arise with such contracts, with the extensive use of current case studies
Who Will Benefit from
Attending this 3-day Workshop Anyone working in Gas and LNG sales, purchase and contract negotiations will benefit from gaining a more indepth understanding of advanced principles of gas contracts. Oil and gas professionals working in the area of upstream and transportation agreements, contract management and dispute resolution, markets, networks and pricing will it beneficial to attend. Job titles include but are not limited to:
• Business Development Managers/Executives
• Pipeline Managers/Executives
• Gas/LNG buyers, sellers, distributors and traders
• Strategy Managers/Executives
• Business Development Managers
• E&P Professionals/Managers
• Geologists
• Corporate & Administration Professionals
• Buyers, Sellers & Distributors
• Traders/Investors/Auditors Managers
This intensive 3-day course encourages a participative workshop approach and is highlighted by a detailed examination of:
• Terms of recently concluded gas and LNG Sales contracts;
• Risk Matrix of an entire project showing the balance and interaction between its various elements
Course Director
Anthony Way is a renowned expert in the resolution of pricing disputes in gas and LNG transactions. He has been appointed in over 60 such disputes that have gone into International Arbitration, where he has been called upon to give Expert Witness testimony. Anthony is the managing partner and founder of TWCOG LLP. Prior to this he held senior management positions in Enron Corporation, Amoco Production Company. He holds an M.A. (CANTAB) in engineering from Cambridge University, where he was a senior exhibitioner at Caius college.
Anthony Way is a frequently-appointed Expert in the international Oil and Gas industry. Prior to founding TWCOG Anthony had a successful senior career in this industry, and is a global expert on Gas and LNG contracting. This expertise (including financial valuation and economic analysis) he applies in the assessment of contractual disputes and damages as part of International Arbitration proceedings.
He has acted as an Expert Witness and Advisor in over 50 price reviews of gas and LNG supply and purchase contracts since 2006, both in support of price review discussions and negotiations and in giving Expert Witness testimony in International Arbitration. Broadly recognised as one of the leading global experts in this field, clients have included RWE, Enel, Edison, Gas Natural Fenosa, Uniper, PGNiG, Engie, Naftogaz of Ukraine, Kansai Electric and PETRONAS.Mr Anthony Way’s expertise stems from an extensive and highly regarded career, including senior roles with international Energy companies, namely Enron International and Amoco Production Company.
Recent Assignments:
Appointed by LNG buyers as an independent expert on two further large scale (2 mtpa+) LNG price review disputes, one for an Asia-pacific source and one in the Middle East.
Appointed to develop and implement an alternate negotiation strategy under a price review; This alternative strategy, supported by a trends analysis developed by TWCOG, has resulted in an a significant supply cost reduction.
Engaged to provide an LNG spot market entry strategy to a Middle Eastern independent energy player. Including advising on Master Agreement negotiation and spot procurement strategy;
Advised on a European focused LNG acquisition strategy for a major energy company.
Provided a strategy and commercial advice for a major energy company on the creation of an LNG-to-power business unit.
Appointed as expert by PGNiG in price reviews under it’s Russian gas supply contract.
Appointed by LNG buyers as an independent expert on two further large scale (2 mtpa+) LNG price review disputes, one for an Asia-pacific source and one in the Middle East.
Appointed by several major LNG buyers in the Asian LNG market (Korea and Japan) as expert in ongoing price reviews.
Expert Advisor and Expert Witness for major European gas buyers/importers in their Price Reviews of a large number of gas supply contracts; economic and financial analysis to provide Expert Witness submissions. Acted as Expert Witness under International Arbitration.
Appointment as Expert to the Arbitration Institute of the Stockholm Chamber of Commerce in the arbitral resolution of a high value contractual dispute relating to Price Review in gas sales in Central Europe.
Commercial Advisor to the Singapore LNG Terminal in its assessment of the terms for the import of LNG and the establishment of a multi-user import terminal; including a leading role in the negotiations.
Appointed as Expert in 2015 to Naftogaz of Ukraine in its multiple disputes concerning the purchase and transit of gas from Russia.
Workshop Agenda | 19-21st March 2025
Module 1 The Essence of the LNG and Gas Sales Contract
Drivers of global supply/demand for gas
Gas resources vs. demand centres
The Growth in US Exports of LNG
Traded markets
Technical issues & Transportation
LNG value chain
Global LNG industry players
Global LNG trends
Major LNG projects
Gas price parity to crude oil
Module 7 Price Risk Management and Financing
Objective of gas price formula
Contract price changes over time
Relationship between price and value
Changes in market value
Taking into account Buyers gross margin
Financing Gas/LNG projects
Financing options: Capital markets; Public Financing;
MLAs & Export Credit Agencies; Project Finance
Financing Agreements
Module 2 Current Practice in Gas & LNG Sales Contracts
Non-price features of agreements
Delivery Point (incl. flexibility)
Start date provisions
The approach to contract length
How to express gas quantities in pipeline gas contracts
Volume flexibility and options in LNG contracts – recent approaches
Take or Pay; Make-Up and Carry Forward
Force-Majeure in gas sales contracts; the differences between pipeline gas and LNG
Current practice on shortfall penalties
Module 8 The Full Gas Sales Contract & Role of the Price Review
The price review process
The price review trigger
Frequency and basis of price review Hardship provisions
Recent developments in Atlantic and Paciic Basin LNG prices
Diminishing linkage to Crude Oil
Price Reviews
The Hardship Clause
Module 10 Economic Assessment of Gas Contracts
Tools & Techniques used
From Reservoir to economics
NPV
Economic parameters
Probabilistic techniques
LNG Netback prices
Module 5 European and US Traded Gas M
European gas networks
Uniformity of Quality and Network Codes
Products in European traded markets
Gas trading in European markets; swaps and derivatives
Sales Gas pricing in the US; LNG Exports from Gulf Coast
Location basis differential pricing system
Shale gas impact on global supply
Status of US LNG Export Terminal
Module 11 International Arbitration of Price Review Disputes
Dispute resolution in GSAs and LNG SPAs
Potential areas for dispute
Settlement
Referral to Arbitration
International Arbitration
Arbitration procedures
Expert Resolution & Expert witness
Module 6 Identification and Handling of Risk in Gas Projects
The contractual chain: Upstream Agreements; Fiscal Regimes; Licence
Regimes; PSAs; Unitisation and JOAs; Gas Supply Agreements;
Transportation & Processing Agreements; Storage Agreements
Understanding risk in gas projects; overview of the various types of risk that
can occur
Risk apportionment – its fundamental role in project financing
Risk should lie with the party who can best control it: rewards should be
proportional to the scale of risks being taken and the likelihood of such risks
occurring
Identifying and allocating risk
How areas of risk are handled in the contractual arrangements for the supply of gas to a project
Upstream commercial arrangements; addressing reserve risk of the
upstream parties
Counter-party risk throughout the contractual chain
Market risk; the commercial balance that defines who bears take or pay risk
Price risk and the mechanics of price indexation
The risk matrix – a techniques for risk assessment
Building a typical risk matrix
Case Studies that will be used as reference include: International Arbitration of Price Review Disputes
• Case Study: Pipeline Gas Contract • Case Study: LNG Sales Contract • Case Study: EU Gas Price Review
About TWCOG
TWCOG LLP is an independent commercial advisory firm in the global energy sector.
It is dedicated to helping oil and gas industry organisations create successful projects, mitigate risk and resolve disputes. Our expertise comes from our experience in complex transactions in the oil, gas and LNG sectors.
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ACCOMMODATION: Hotel charges are at the delegate’s own account and reservations can be made directly with the hotel on the above number. Delegates will be responsible for their own travel arrangements and accommodation.
